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Bush: U.S. oil reserves locked up tight - Chavez: claims role of "oil commander"

Smoke billows behind an oil refinery in El Palito, appoximately 150 miles West of Caracas, January 7, 2003. Workers trying to restart Venezuela's 130,000 barrel per day El Palito refinery, shut by a 37-day strike by foes of Venezuelan President Hugo Chavez, have damaged a seal in one of the vacum units. 'The products have to be drained from the vacum unit of the plant and they have to be burned', Pedro Jimenez, the plant's logistics manager said. REUTERS/Str

An oil leak near western Maracaibo, Venezuela, is seen Tuesday, Jan. 7, 2003. According to members of the opposition in a news conference Monday, new workers who were trying to resume oil production had an accident, resulting in the leakage. (AP Photo/Ana Maria Otero)

Venezuela to Split State's Oil Monopoly - Replacement workers damaging equipment *** CARACAS, Venezuela - President Hugo Chavez, battling a strike that has paralyzed the world's fifth-biggest oil exporter, will restructure the state oil company to tighten government control and eliminate dissent, the energy minister said.

In a nationally televised speech, Energy Minister Rafael Ramirez said the Caracas headquarters of Petroleos de Venezuela S.A. would be mostly dismantled. The company's administration would be moved to two centers of operation in eastern and western Venezuela.

Ramirez didn't say how many of the 7,000 workers at the headquarters will lose their jobs, but most are currently on strike. The government says it will fire strikers - some 35,000 are off the job - and already has dismissed high-ranking executives.

Ramirez, who told reporters last week of the plan to split the company, said a new board "with a more strategic vision" will soon be appointed. The company will focus more on production of crude, gas and refining, he said.

Chavez long has said he wanted to restructure the company, which he has called a "state within a state" run by privileged executives. Chavez wants to increase government revenues from the company.

"We need a PDVSA much more efficient ... and not as an oil enclave, but a company at the service of the nation," Ramirez said. Bureaucracy in Caracas increases operating costs by $1 billion a year, he added. ***

Chavez opponents rip up tax forms [Full Text] CARACAS, Venezuela -- Tens of thousands of Venezuelans marched on the federal tax agency Tuesday and many ripped up their tax forms, vowing to further deprive President Hugo Chavez of revenue as part of their strike that has already dried up oil income. In a speech he ordered broadcast on all radio and TV stations, Chavez warned that tax evasion carries up to seven years in prison.

Protesters cheered and blew whistles as they tore up blank tax forms at the doors of the tax agency. They called for individuals and businesses to stop paying income and value-added taxes. The march was the first opposition protest in the capital since clashes between Chavez foes and followers and security forces left two people dead and 78 injured last week.

Venezuela's largest labor confederation, the biggest business chamber and opposition political parties began the strike Dec. 2 to pressure Chavez into resigning or accepting an early vote on his rule. The president has refused to do either. The strike has crippled Venezuela's oil industry, which provides half of government income and 80 percent of export revenue. [End]